According to Cointelegraph, issuers of cryptocurrency exchange-traded funds (ETFs) are advised to carefully select which digital currencies to include in their offerings, as much of the crypto market remains uncertain. Greg King, CEO of REX Financial, emphasized the need for discernment, noting that the crypto landscape becomes increasingly unreliable beyond the top 10 or 20 cryptocurrencies. King shared these insights during an appearance on Bloomberg's ETF IQ, highlighting the importance of strategic selection by ETF issuers.
King expressed skepticism about a significant surge in ETF filings for various cryptocurrencies, although he anticipates a proliferation of funds dedicated to individual coins. The recent success of spot Bitcoin ETFs has prompted issuers to seek approval for a range of crypto funds, especially as the Securities and Exchange Commission (SEC) under U.S. President Donald Trump has adopted a more favorable stance toward the sector. REX Financial is currently awaiting approval for ETFs linked to memecoins, including Bonk (BONK), Official Trump (TRUMP), and Dogecoin (DOGE), which ranks as the tenth largest cryptocurrency by market capitalization.
In July, REX Financial introduced a Solana (SOL) ETF that incorporates exposure to staking rewards, which are incentives for locking up tokens to support the blockchain. King advocates for Solana as a promising platform for stablecoins, suggesting it could surpass Ethereum in this domain. He remarked on Solana's superior processing speed and its potential to become a dominant force in the stablecoin market, challenging the prevailing preference for Ethereum. King's comments have sparked debate, with some viewing Solana as a rising contender poised to challenge Ethereum's dominance.
King also addressed the anticipated increase in crypto ETFs, predicting a notable expansion in the number of offerings. He highlighted the unique situation in the ETF market, where multiple issuers are eager to launch similar products, as seen with Bitcoin and Ethereum ETFs, and now with Solana. King believes this trend will continue, with Solana emerging as a strong candidate for a spot ETF due to its competitive edge over Ethereum and its attractive staking rewards.
Currently, nine issuers have filed to launch a spot Solana ETF, including VanEck, Bitwise, Grayscale, 21Shares, CoinShares, Canary Capital, Franklin Templeton, Fidelity Investments, and a joint fund by Invesco and Galaxy Digital. The SEC is expected to approve these funds for trading by October, with analysts and prediction market participants indicating a high likelihood of approval.
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